Binance's 2024 Token Listings Struggle as All Turn Red

Despite a positive start to 2024, new tokens listed on Binance have predominantly underperformed. This trend persists even though Binance has been diligent in vetting projects before listing. The current market performance contrasts with the initial optimism around these new assets.

Blue Chips Dominate Trading

Binance’s trading activity is heavily skewed towards established cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Solana (SOL), which together account for approximately 80% of market volumes. In contrast, newer and smaller tokens make up less than 20% of the trading activity, often suffering from lower liquidity and less favourable trading conditions.

Underwhelming Performance of VC-Backed Tokens

Tokens backed by venture capital (VC) have struggled, with projects like Wormhole (W) and AEVO losing nearly 90% of their value in recent months. Despite being part of the top narratives for 2024—such as AI, DeFi, and Web3—these tokens have faced significant declines, exacerbated by token unlocks and general market selling pressures.

Meme Tokens Outperform

In a surprising twist, meme tokens have fared better, largely due to Binance's strategic liquidity concentration. Pepe (PEPE), despite being listed with a warning, has seen an 800% increase year-to-date, outshining many VC-backed tokens. The success of meme tokens highlights a shift in investor focus from utility projects to brand-driven narratives and meme-based communities.

Variations in Performance

Token performance has varied significantly. Some assets, listed after April when liquidity began contracting, have lagged compared to Ethereum (ETH) but have held up better relative to other large-scale projects like Optimism (OP). Post-airdrop tokens, such as Banana Gun (BANANA), initially surged but then declined due to increased selling and liquidity shifts.

Jupiter (JUP) Stands Out

Jupiter DEX’s JUP token is a notable exception, outperforming other Binance listings. Currently trading at $0.89, JUP has maintained positive performance over the past year, despite being significantly below its peak of $1.80. With only 1.3 billion of its 10 billion supply in circulation and a significant portion controlled by the team, JUP’s stability is supported by a revenue-sharing programme and social media presence of its founder, @weremeow.